Consumer's Equilibrium and Demand-Demand [CBSE (Central Board of Secondary Education) Class-12 Economics]: Questions 35 - 41 of 62

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Question 35

Describe in Detail Subjective▾

Calculate the price elasticity of demand for a commodity when its price increases by 25% and quantity demanded falls from 150 units to 120 units.

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Explanation

Here, Percentage change in price = 25%

Percentage change in quantity demanded =

=

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Question 36

Write in Short Short Answer▾

What happens to equilibrium price of a commodity if there is an ‘increase’ in its demand and ‘decrease’ in its supply?

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Question 37

Describe in Detail Subjective▾

Distinguish between ‘deficient demand’ and ‘excess demand’ in macroeconomics. Explain the role of open market operations in correcting deficient demand

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Explanation

Distinguish between Deficient Demand and Excess Demand in Macroeconomics in Detail
characteristicsDeficient demandExcess demand

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Question 38

Describe in Detail Subjective▾

Explain the effect of rise in the prices of related goods on the demand of a good.

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Explanation

Rise in price of related goods: The related goods can be classified into following categories.

  • Substitute Goods: Substitute goods refer to those goods that can be consumed in place of another good.
  • For Example tea and sugar. In case of substitute goods, if the price of one good increases, the consumer shifts his demand to the other good i.e.. rise in…

… (183 more words, 11 figures) …

Question 39

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What is the relation between good X and good Y in each case, if with fall in price of X demand for good Y (i) rises and (ii) falls? Give reason.

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Explanation

  1. With fall in the price of x, demand for good Y rises:- This situation suggests that these are supplementary go…

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Question 40

Write in Short Short Answer▾

Price elasticity of demand for good is (-) 2. The consumer buys a certain quantity of this good at a price of ₹ 8 per unit. When the price falls he buys 50 percent more quantity. What is the new price?

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Question 41

Describe in Detail Subjective▾

When price of a good falls from ₹ 10 per unit to ₹ 9 per unit, its demand rises from 9 units to 10 units. Compare expenditures on the good to find price elasticity of demand.

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Explanation

Calculatetion of Price Elasticity of Demand

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